US Freezes $344 Million in USDT, Citing Iran Sanctions and 'Economic Fury' Campaign

In its latest move to disrupt Iran's financial networks, the US Treasury Department has frozen $344 million in cryptocurrency, citing the regime's attempts to circumvent sanctions. According to Treasury Secretary Scott Bessent, the Office of Foreign Assets Control (OFAC) has imposed sanctions on multiple crypto wallets linked to Iran, resulting in the freeze of $344 million in cryptocurrency. The action is part of a broader initiative dubbed 'Economic Fury', aimed at targeting the financial lifelines of the Iranian regime. The freeze follows Tether's blacklisting of two blockchain addresses on Tron, holding a combined $344 million in USDT. A US official revealed that the sanctioned wallets had significant connections to the Iranian regime, including transactions with Iranian exchanges and routing through intermediary addresses linked to wallets associated with the Central Bank of Iran. The Iranian central bank has been increasingly relying on digital assets to conceal cross-border transactions. Authorities claim that Iran has been utilizing crypto to bypass restrictions, employing complex transaction patterns to obscure its involvement in cross-border payments and support trade flows under sanctions pressure. The Treasury Department's OFAC is escalating its efforts against both traditional front companies and the use of digital assets, with the official stating that the agency is working with blockchain analytics firms and coordinating with financial institutions, including crypto exchanges, to track illicit flows tied to sanctioned entities. Additionally, the US sanctioned Hengli Petrochemical (Dalian) Refinery Co., accusing the China-based independent refineries of playing a significant role in Iran's oil economy.